RESTRUCTURING CHARGES

12 Months Ended

Dec. 31, 2023

Restructuring and Related Activities [Abstract]

In the second quarter of 2020, Eaton initiated a multi-year restructuring program to reduce its cost structure and gain efficiencies in its business segments and at corporate in order to initially respond to declining market conditions brought on by the COVID-19 pandemic. Since the inception of the program, the Company incurred charges of $382 million. The multi-year program was substantially complete at the end of 2023.

A summary of restructuring program charges (income) is as follows:



(In millions except for per share data)	2023		2022		2021
Workforce reductions	$	19	$	(13)	$	21
Plant closing and other	38		47		57
Total before income taxes	57		33		78
Income tax benefit	11		4		18
Total after income taxes	$	46	$	29	$	60
Per ordinary share - diluted	$	0.11	$	0.07	$	0.15

Restructuring program charges (income) related to the following segments:



(In millions)	2023		2022		2021		2020
Electrical Americas	$	5	$	17	$	14	$	18
Electrical Global	26		14		18		55
Aerospace	5		8		8		34
Vehicle	6		(15)		21		102
eMobility	7		1		1		1
Corporate	8		8		16		4
Total	$	57	$	33	$	78	$	214

A summary of liabilities related to workforce reductions, plant closing, and other associated costs is as follows:


(In millions)	Workforce reductions		Plant closing and other		Total
Balance at January 1, 2020	$	—	$	—	$	—
Liability recognized	172		42		214
Payments, utilization and translation	(33)		(39)		(72)
Balance at December 31, 2020	$	139	$	3	$	142
Liability recognized	21		57		78
Payments, utilization and translation	(64)		(52)		(116)
Balance at December 31, 2021	$	96	$	8	$	104
Liability recognized, net1	(13)		47		33
Payments, utilization and translation	(45)		(51)		(96)
Balance at December 31, 2022	$	38	$	4	$	41
Liability recognized, net	19		38		57
Payments, utilization and translation	(21)		(36)		(57)
Balance at December 31, 2023	$	35	$	6	$	41

1 The restructuring program liability was adjusted by $30 million in 2022 related to true-ups for completed workforce reductions and the decision not to close a facility in the Vehicle segment that was previously included in the program.

These restructuring program charges (income) were included in Cost of products sold, Selling and administrative expense, Research and development expense, or Other expense (income) – net, as appropriate. In Business Segment Information, these restructuring program charges are treated as Corporate items. See Note 18 for additional information about business segments.

On February 1, 2024, the Company announced a new multi-year restructuring program to accelerate opportunities to optimize its operations and global support structure. These actions will better align the Company's functions to support anticipated growth and drive greater effectiveness throughout the Company. This restructuring program is expected to be completed in 2026, with anticipated workforce reductions of $275 million and plant closing and other costs of $100 million, resulting in total estimated charges of $375 million for the entire program.